The developing countries, especially in the Balkans, barely use the municipal bonds as an alternative way of financing their activities. This paper is part of the project "The municipal bonds as an alternative source of financing municipals activities and the effective management of funds, with a special emphasis to the Municipality of Stip, R. Macedonia". The paper has an important impact, according to both academic and practical perspective. It combines the experts' academic analysis with the municipals potential in order to facilitate a successful municipal bond emission that would support the local economic growth. The purpose of this paper is to investigate the ability and willingness of the Municipality of Stip to issue municipal bonds. The main hypothesis states that the Municipality of Stip is able to issue a municipal bond as an alternative way of financing its investment activities. The research includes the classical SWOT analysis regarding the Municipality of Stip and continues with a statistical analysis based on correlation and regression relationships within the accounts of the Municipality's annual reports. The methodological framework is based on quantitative research methods (correlations and regression methods) which result in acceptance of the main hypothesis in the paper-the 156 | Marija GOGOVA SAMONIKOV, Elena VESELINOVA, Ilija GRUEVSKI, Risto FOTOV, Risto BINOVSKI Municipal Bonds in Developing Countries. Case Study: Municipality of Stip, Republic of Macedonia municipal bonds as an alternative source for funding municipal's activities are justified, especially if the funds are associated with a specific revenue-generating project. The findings would serve as a basis for the municipal bonds prospect, which would be the ultimate goal of combining the academic knowledge with the practical potential of the Municipality of Stip. The conclusions reveal that this would be the first municipal bond emission in the Republic of Macedonia. However, this fact can serve as an advantage in the market in terms of introducing financial instrument innovation. This paper suggests that the usage of municipal bonds is far away from a risky activity, especially if the funds are invested in revenue-generating projects. Municipal bonds can be a less expensive source of funds for the municipal's projects, rather than different forms of domestic or foreign borrowings. In this way, municipalities can use this financial instrument to initiate and support local economic growth.

The paper generally describes the segment of public debt management or especially the structure of public debt. It focuses on different kinds of risks which present potential danger for the public debt explosion. It intends to explain the government goal for borrowing money at lowest rate and sustain the fiscal stability. Also, it explains some practical issues regarding this topic for Republic of Macedonia for the period from 2009-2011. In the process of research were implemented several qualitative methods.

The evidence on the practice and effects of discretionary fiscal policy, particularly in the context of recent efforts to stimulate the economy, is reviewed where two main conclusions are drawn. First, policy interventions have increased in this decade predating the 2009 stimulus. Second, despite huge economic literature on the topic, the state of theory and evidence is not as "shovel ready" as one would like. Although consumption and investment clearly respond to tax incentives and structural vector auto-regressions show that lower taxes and higher government purchases can boost output, it is difficult to apply the findings in the current context, in part because multipliers and policy lags are likely to vary with economic conditions. This paper considers theoretical predictions and recent empirical Vector Autoregression (VAR) evidence on the short-run effects of discretionary fiscal policy on macroeconomic aggregates. JEL Classifications: E62, H30

Our intention in this article is to examine the possible consequences on the Macedonian capital stock generated by the ongoing economic crises, originated from the Russian -Ukraine conflict, as well as to evaluate the eventual effects on capital accumulations from the upcoming tax reform starting from January 2023. In order to deflect invading Russia, western countries nave implemented numerous sanctions, but so far they haven't achieved their primary goal. Instead, a surge of inflation has occurred, especially on food, energy and oil, indicating on the economic fragility and energy dependency of the European countries. And this trend wasn't exceptional for North Macedonia, on the contrary, the inflation rates are record breaking ever since 1994. Meanwhile, the monetary policy was "sluggish" and unable to offer an adequate response to the accelerated spiral of inflation. The Central bank raised the basic interest rate, but not enough to incorporate the inflation premium. As a result, the real interest rate has fallen deeply into the negative zone, which could, as we can see from the research bellow, possibly decrease the marginal productivity of capital and therefore the capital stock. On the other hand, the intended tax reform is also expected to interfere the cycle of capital accumulations, but in much smaller effect. All these determinants are examined with application of the model of domestic capital formation, developed on the foundations of Neoclassical Theory of Investment, the concept of Marginal Productivity of Capital and the principles of Marginal Effective Tax Rates. The results will reveal that there is a real possibility for sharp contraction of investment and for the first time in the last 3 decades, disruption of the perpetual cycle of capital stock in domestic economy.

This article reveals some major prospects and constraints of the Small and Medium Enterprises Sector from the East-Planning Region of the Republic of Macedonia. The economic profile presented here, only reaffirms its great significance for the overall condition of the regional economy as the numbers show that over 99% of all active enterprises from this region fall into this category. The analysis of the prospects and constraints is designed as a comparative study of the strengths, weaknesses, opportunities and threats gathered from the interviews conducted and the documents examined. It will provide further indication and a starting point for the following series of additional researches within the project named "Forms of finance of the growth of the small and medium-sized enterprises with a focus of the East-Planning Region in the Republic of Macedonia". Specifically, the intention of the ongoing project which is internally funded by the "Goce-Delchev" University from Stip, is to identify the most dominant sources of finance, detect if they pose limitations for the SMEs, and promote some alternative and modern forms of finance. Also, the project will produce a proposal of a possible framework of enterprise policy intended for the policy makers and the other interested parties in this sector. During the assessment of the standard elements of this framework, a set of interacting measures will be recommended also, for the